Azerbaijan pays tribute to oil workers on professional holiday Marking 31 years of “Contract of the Century”

Today, Azerbaijan is celebrating Oil Workers’ Day, the professional holiday of the country’s oil industry employees.

Caliber.Az reminds its readers that this commemorative date is tied to the signing on September 20, 1994, of the landmark agreement known as the “Contract of the Century.” The deal not only transformed Azerbaijan’s destiny but also secured its entry into the global energy market.

Azerbaijan’s oil industry has deep roots. Industrial development of oil fields began in the 19th century, and Baku quickly earned the title of “city of black gold.” By 1901, Azerbaijan was producing 11 million tonnes of oil, accounting for more than half of the world’s total output at that time.

The collapse of the Soviet Union and the transition to a market economy brought immense challenges. The breakthrough came in 1994 with the signing of the “Contract of the Century,” a production-sharing agreement on the joint development of the Azeri-Chirag-Guneshli (ACG) oil field with leading international oil companies. The contract attracted large-scale investment, enabled the creation of a modern oil infrastructure, and enhanced production efficiency. This agreement became a cornerstone of Azerbaijan’s development.

Revenues from the oil sector significantly boosted the state budget, allowing the government to finance social programs and infrastructure projects. Azerbaijan also established itself as a reliable energy partner for many countries, with its oil enjoying strong demand in global markets. Cooperation with foreign companies introduced advanced technologies into the national oil industry.

At the same time, the successful realisation of this large-scale oil project strengthened Azerbaijani statehood and raised the country’s standing on the international stage.

Today, Azerbaijan holds a prominent place on the world oil map. It is one of the Caspian region’s leading oil exporters and plays an active role in international energy projects. While its share of global oil production is relatively modest, Azerbaijan’s strategic position and abundant hydrocarbon reserves make it a key player in the global energy market.

The country contributes to the energy security of many nations through its oil and gas supplies. These achievements are the result of both the wealth of Azerbaijan’s oil fields and the dedicated work of its oil workers. Since production began at the ACG field, 595.8 million tonnes of oil and more than 225 billion cubic metres of gas have been extracted as of September 1 this year. Over 4.3 billion barrels of ACG oil have been exported through the Baku-Tbilisi-Ceyhan pipeline. Between 2001 and September 1 this year, oil sales from the ACG field generated revenues of $174 billion.

Despite these successes, Azerbaijan’s oil industry faces new global challenges, including the transition to renewable energy and a decline in oil demand. To sustain its position in the international market, Azerbaijan is actively diversifying its economy, developing non-energy sectors, and investing in innovative technologies. One priority is the further expansion of the natural gas industry and increased gas exports.

Thus, Oil Workers’ Day is more than a professional holiday — it is a symbol of national pride. Over the past 31 years, the “Contract of the Century” has demonstrated its long-term impact, becoming a foundation of Azerbaijan’s prosperity. Looking ahead, the country remains committed to strengthening its oil industry, embracing innovation, and adapting to the evolving global energy landscape.

By Tamilla Hasanova